Applying Arbitrage Technique by using Automated Trading- Money Classic Research

The traders are always
on the lookout for trading strategies which are risk free or involves minimum
risks. Out of the many strategies the strategy related to arbitrage are
considered to be the best strategy. The arbitrage technique is good but it
requires very fast response from the side of trader so that the real benefit
from the arbitrage technique can be taken. Thus automated trading is an option
which can fetch the best results with arbitrage technique.

The automated trading
is a system in which a computer is used to trade. The buy and sell calls are
placed when the rules of the strategy programmed are executed. The automated
trading involves the programming of strategy in the computer and the computer
will take automatic decisions when the rules are met. Due to this automation
the automated trading provides a very fast response. Thus as soon as the rules
are met, the buy and sell calls are placed in fractions of seconds. Such type
of fast response is not possible by human beings as they have their natural
reaction time.

The arbitrage like the
inter exchange arbitrage can be practiced using the automated trading platform.
In case of this type of arbitrage the stocks which are having difference of price
on the two exchanges are selected and Stock on one exchange is bought and on
other exchange is sold to book a fixed profit. As the price of the stocks
changes in fraction of seconds a automated trading platform can help the trader
to trade effectively and book good profit.

Money Classic Research is an advisory firm which provides accurate stock
market tips in form of accurate equity
tips and Intraday Trading tips. The
advisory firm Money Classic Research provides support for the above discusses
strategy and also helps traders in devising new strategies like hedging
strategy.